Cambodian and U.S. anti-drug agencies dismantled a cryptocurrency money-laundering network allegedly operated for Mexico’s Sinaloa Cartel, seizing $7 million in crypto assets during raids from Aug. 1 to 5 at four locations in Phnom Penh and neighboring Kandal province. Authorities also confiscated more than 200 kilograms of illegal drugs, over one metric ton of precursor chemicals, and shut down multiple drug laboratories and storage facilities; at least six Vietnamese nationals were arrested. Cambodia’s National Authority for Combating Drugs said the network used digital assets to conceal drug-trafficking proceeds, typically through stablecoins such as USDT on the Tron network and layered wallet transfers. The case underscores Southeast Asia’s role as a financial and logistics hub for transnational criminal groups and could renew scrutiny of Cambodia’s enforcement record after its removal from the Financial Action Task Force gray list in 2023. The Sinaloa Cartel has faced U.S. sanctions since 2023 and was designated a “foreign terrorist organization” by the Trump administration, creating severe legal consequences for material support.